3 Things You Should Know About Personal Loan
Whenever you need an urgent fund the question arrives in mind that from where you will get the money? but now you don’t have to worry about it now, as a personal loan is there for you. you can get this without any collateral in this interest rates are high but if you have a good interest rate you can get it at an affordable rate
How Personal Loan works
- borrow a fixed sum and repay it with monthly instalments.
- loan tenure isn’t that long it generally ranges from 12 to 84 months.
- Once you’ve repaid your loan sum, you’ll be able to apply for a new loan but this is recommendable first clear your previous loans and then goes for a new loan.
Types of Personal Loans
- Unsecured Loan: In this, there is no need of keeping any collateral, the bank will check your income proof and credit history. If your profile matches the personal loan eligibility criteria, you can apply for a personal loan.
- Secured Loan: In this loan, if you will unable to repay the loan at a given time bank will take away your assets. The interest rates on a secured personal loan are comparatively lower than the unsecured type of personal loan.
Personal loan Interest rates and other fees
- Interest rates: Interest rates generally range from approx. 5% to 36% depending on the bank and your credit history. This is recommendable don’t extend your tenure much otherwise you have to pay more interest.
- Origination fees: Some banks and lenders charge a fee so they can cover their loan’s processing cost. The fee generally ranges from one to six percent of the loan sum.
- Prepayment penalties: If you pay off your loan before fixed tenure then some lenders charge a fee because early repayment means the lenders are passing up a major opportunity for a portion of the interest that they would have generally earned.
To know more about personal loans without wasting any time, visit DialaBank.
Major Personal Loan Providing Institutions:
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